Minimum wage increase will ease cost of living, says minister

October 26, 20157:57 am280 views
Minimum wage increase will ease cost of living, says minister
Minimum wage increase will ease cost of living, says minister

The Human Resource Ministry is confident that the increase in minimum wage for private sector workers in the country would somewhat ease the latter’s cost of living.

Its Minister Datuk Seri Richard Riot believed the new rate announced in the Budget 2016 would not burden employers and industries.

“The government had considered the views of various parties including employers and workers through the National Wages Consultative Council and members of the public before deciding on the new minimum wage rate,” he said.

He said this to reporters after chairing a post-Budget meeting at Menara Dato Onn at the Putra World Trade Centre in Kuala Lumpur last night.

In the Budget 2016 announced by Prime Minister Datuk Seri Najib Razak, the minimum wage rates have been fixed at RM1,000, up from RM900, in the peninsula and RM920, up from RM800 in Sabah, Sarawak and Labuan for all sectors except domestic services or domestic maids.

Richard said the increase in Social Security Organisation (Socso) coverage from RM3,000 to RM4,000 would benefit about 500,000 workers who previously did not enjoy such advantages.

The minister said tax relief under Section 49 of the Income Tax Act 1967 on the workers’ contribution to the Employees Provident Fund (EPF) and life insurance would increase their disposable income; 1.5 million workers would benefit from this.

Richard also welcomed the proposal to set aside 30% of the Human Resource Development Fund for implementation of training programmes for local industries in Sabah and Sarawak as well as the “Outplacement Centre” to re-train retrenched workers.

news source & image credits: themalaysianinsider.com

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